analysis of fabrication yards in nigeria -fabrication... · 2020. 5. 7. · 1. the total...

Analysis of Fabrication Yards in Nigeria

Presented By

Directorate of Planning, Research and Statistics (PRS)

July 29,2019(c) Copyright of NCDMB

www.ncdmb.gov.ng1

Introduction

Pursuant to the approved Research and Statistics framework of NCDMB, we present data analytics onfabrication yards in Nigeria. Description of the data is presented below

1. What to measure:

a. HCD- employment and training

b. Yard capacity

2. Data source:

a. Functional fabrication yards in Nigeria

b. Egina Project M&E report

3. Number of yards covered

a. Sample population -25 fabrication yards

b. Response- 9 fabrication yards

4. Methodology

a. Designed questionnaire template

b. Administered questionnaire

c. Collated data

d. Subjected data to analytics

5. Data period-

a. Fabrication Survey 2017

b. Egina project monitoring report Q1, 2019


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July 29,2019

3

Research Methodology

(c) Copyright of NCDMB www.ncdmb.gov.ng

Data Gathering Analytics Policy

Recommendation

Data collation date- 2017

1. NCCF engaged

Fabrication yard on

objective of data

2. Designed

questionnaire

3. Transmitted template

to fabrication yards

4. Transmitted data to

R&S team

5. R&S extracted data

related to local content

indicators

6. M&E Egina project

report

1. Descriptive

2. Diagnostics

3. Prescriptive

1. Categorize fabrication

yard into 3 tiers

2. Mandate fabrication

yards to submit data on

Local content indicators

on the NOGICJQS

platform

3. Investment in training

should be a local

content requirement in

bids

4. M&E oversight should

be carried out for

impact assessment

5. The Board should work

with Mines and steel

sector to develop local

steel industry

6. There should be

establish

comprehensive

baseline data

S/N Raw material*

Average annual spend

Average volume consumed

Key source Key suppliers

Local Foreign

ExternalYard

AreaSize(m2)

AddressandLocation

Distance fromnearest waterbody

Locationand ShoreDepth ofwaterbody

1

2

(c) Copyright of NCDMB www.ncdmb.gov.ng

July 29, 2020

Data Analytics: Yard capacity by land size


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Diagnostics

1. The 9 fabrication yards have total area of 642,015.94 m2.

2. The top 5 yards by land size account for 98% and they are Bablink Resources with

280,020 m2, Nigerdock with 188,000 m2, Daewoo with 105,133 m2, Dormanlong with

39,000 m2 and Araboil company with 21,672.94 m2

3. AOS Orwell limited has the smallest yard with 5,000 m2 while there was no data

submitted by Ishak Soneh, and Cakasa Nigeria limited for their areas

4. Total yard size of top fabrication yards in South Korea are Hyundai heavy industry

Ulsan 7,203,404 m2, Samsung heavy industries has 217,695 m2

39

,00

0

28

0,0

20

5,0

00

10

5,1

33

8,1

90

21

,67

2.9

4

18

8,0

00

AR

EA M

2

YARDS

Data Analytics: Scope of Fabrication

July 29,2019 (c) Copyright of NCDMB www.ncdmb.gov.ng

5

Diagnostics:

1. The fabrication yards provide 3 major services-

ship building, repair & maintenance, metal

frame fabrication and erection and installation

of steel structures .

2. Out of the 9 yards that responded to the

questionnaire, only 2 are into ship repair and

maintenance namely:

• NigerDock

• Bablink Resources Nigeria limited

3. 8 are into metal frameworks and erection &

installation of production platform namely:

I. Dormanlong Engineering Limited;

II. Bablink Resources Nigeria limited;

III. AOS Orwell Limited (Titan Tubulars

Nigeria Limited);

IV. Daewoo Nigeria limited;

V. OCO Industrial Services Limited;

VI. Araboil Company Limited

VII. Ishak Soneh Nigeria Limited (in

partnership with TEKNITRADE NIGERIA

LIMITED);

VIII.NigerDock

4. From this analysis most of the yards do not

have capacity for multiple fabrication scope

8 8

2

0

1

2

3

4

5

6

7

8

9

Metal Frameworks Erection andinstallation

Ship repair andmaintenance

NU

MB

ER O

F Y

AR

DS

SERVICES

SERVICES PROVIDED BY THE FABRICATION YARDS AUDITED

Data Analytics: Tonnage of fabrication executed


www.ncdmb.gov.ng6

Diagnostics:

1. The total fabrication tonnage achieved in 2017 was 228,260 Tons

2. Top 5 fabricated components are Spool - 200,000 Tons, Topside modules - 3,000

Tons, Central Processing Facility (CPF) -2,700 Tons, Buoy- 1,420 Tons and wellhead

platform- 1,800 Tons

2,700

200,000

3,000

1,200

1,420

1,000

1,800

C E N T R A L P R O C E S S I N G

F A C I L I T Y ( C P F ) M O D U L E S

S P O O L T O P S I D E S J A C K E T S B U O Y B A R G E W E L L H E A D P L A T F O R M ,

TON

NA

GE

COMPONENT

TONNAGE

Data Analytics: Value of materials procured

Diagnostics:

1. During the period 2013-2017 $650,841,216 was spent by fabrication yards on procurement of materials

2. Daewoo Nigeria Limited recorded the highest spend of $527 million representing 81% of the spend

3. Considering that Daewoo is among the top 5 fabrication yards in terms of land size the result indicates optimal use of existing capacity

July 29,2019 (c) Copyright of NCDMB www.ncdmb.gov.ng

7

N365 =$1

64.8 32.8

527

26.20

100

200

300

400

500

600

Spen

d $

Company

4 YEARS SPEND ($M)

Data Analytics: volume of materials utilized


www.ncdmb.gov.ng8

1,4001,000

5

1,0001,500

100 48 100VO

LUM

E

COMPONENT

AVERAGE VOLUME PROCURED (TONS EQUIVALENT)

Diagnostics:

1. Only 3 companies submitted volume of material consumed, the companies are: (i) Dormanlong

Engineering Limited (ii) AOS Orwell Limited (Titan Tubulars Nigeria Limited) and (iii) Ishak Soneh Nigeria

Limited (in partnership with TEKNITRADE NIGERIA LIMITED)

2. Out of the total consumption (5000tons), the top 5 materials for fabrication are:

a. Pipes (1,500tons) 30%

b. Steel consumables(1,400tons) 28%

c. welding consumables(1000tons), 20%

d. Grit(1000tons) 20%

2. The average annual consumption mix per yard was between 700 Tons to 12,000 Tons.


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Diagnostics:

1. Total employment across the Nine (9)

fabrication yards is 4,941

2. Nigerdock has the highest number of

employees with 2,657 staff representing 54%

of total employment

3. Ishak Soneh Nigeria with staff strength of 50

has the least number of employees

Data Analytics: Human Capital Development (employment)

Diagnostics:

1. Of the 4,941 employee across the fabrication

yards 4897 (99%)are Nigerians and 42(1%) are

Expatriates

2. Fabrication yard with the highest number of non-

Nigerian workers is Daewoo Nigeria limited with

30 Expatriate while Dormanlong Engineering

Limited and AOS Orwell Limited (Titan Tubulars

Nigeria Limited) has 6 expatriate each

538

52 90

1,291

70 28 48 123

2,657

0

500

1000

1500

2000

2500

3000

TOTAL NUMBER OF NIGERIAN STAFF

544 52 96

1,321

70 28 50 123

2,657

0

500

1000

1500

2000

2500

3000No

. st

aff

company

TOTAL STAFF STRENGTH


www.ncdmb.gov.ng10

30

50

2025

12

20

1 2 5 2 1 0 8 6

26

42

8 0 0 0 0

43

0

10

20

30

40

50

60N

um

be

r o

f St

aff

Yards

2017

Diagnostics:

1. Total number of trained personnel in 2017 is 258.

2. Dormanlong trained the highest number of employees (157). However, this figure is 30% of its

total workforce. Niger dock trained 43 of its personnel out of total workforce of 2,657 (2% of

workforce)

3. Daewoo trained 7% of its workers i.e 90 out of 1,321 staff

4. Cakasa, Ishak Soneh, Araboil, and Oco Industry did not report the number of trained personnel.

5. Trend indicate that there is very little investment on HCD by the fabrication yard.

Data Analytics: Human Capital Development (Training)

Egina Fabrication-Total fabrication scope vs NC executed (Tonnage)


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Diagnostics:

1. The total fabrication scope on Egina project is 82,183.0 Tonnes

2. Total executed NC is 54,667.37 Tonnes representing 66.5% of the total fabrication scope

3. It was observed Aveon and other yards that fabricated Subsea production systems like manifold exceeded

the total fabrication scope, an indication of inadequate scoping of requirements before project commitment

4. It was also observed that for FPSO unit, there was under performance when NC executed is compared to

total scope

700.00

37,987

3,994

39,502

663.4

34,441.37

4,426

15,136.60

AVEON YARD PORT HARCOURT

SCNL FABRICATION YARD, RUMUOLUMENI PORT HARCOURT / EWT YARD, ENDOF OKILO ROAD, ABULOMA, PORT HARCOURT

AVEON OFFSHORE -PORT HARCOURT OIL TOOLS AFRICA -ONNE

REMM OIL SERVICE LIMITED-PORT-HARCOURT…

DORMANLONG YARD, LADOL AND NIGERDOCK – LAGOS, EWT YARD, END OF OKILO ROAD, ABULOMA, PORT HARCOURT

Egina Fabrication(Tonnage)

Total NC ExecutedTonnage Total scope Tonnage

Egina Fabrication NC scope vs NC executed (Tonnage)


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0 5000 10000 15000 20000 25000 30000 35000 40000

AVEON Yard Port Harcourt

SCNL Fabrication Yard, Rumuolumeni Port Harcourt / EWT Yard, End ofOkilo Road, Abuloma, Port Harcourt

Aveon Offshore -Port HarcourtOil Tools Africa -Onne…

Dormanlong Yard – Lagos…

600

35,518

3,923

15,911.40

663.4

34,441.37

4,426

15,136.60

Tonnage

Yar

ds

NC Fabrication

Total NC ExecutedTonnage Total NC scope Tonnage

Diagnostics:

1. The total NC scope for Egina project is 55,952.4 Tonnes

2. Actual executed NC is 54,667.37 Tonnes representing 98% of approved NC fabrication scope .

3. SCNL and EWT fabrication yard jointly have the largest NC Scope (63.4%) and NC executed (63.0%)

while

4. AVEON recorded the least Tonnage of fabrication with 1.1% fabrication scope and 1.2% of NC

fabrication executed

Egina Fabrication(Employment)


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Diagnostics:

1. The total NC plan for employment on Egina fabrication scope is 3,342

2. Full time equivalent employment achieved was 1,515 representing 45% of plan

3. The dearth of skilled fabrication workers, deliberate non-compliance and schedule delays may be

responsible for the less than 50% of target

4. The real cause will be unraveled during the Monitoring and Evaluation exercise

119

2570

178

475

86

958

376

95

0 500 1000 1500 2000 2500 3000

AVEON Yard Port Harcourt

SCNL Fabrication Yard, Rumuolumeni Port Harcourt / EWT Yard, End ofOkilo Road, Abuloma, Port Harcourt

Aveon Offshore -Port HarcourtOil Tools Africa -Onne

Remm Oil Service Limited-Port-HarcourtThompson and Grace -Port-Harcourt

Dormanlong Yard, Ladol and Nigerdock – Lagos, EWT Yard, End of Okilo Road, Abuloma, Port Harcourt

NO. OF EMPLOYMENT

YA

RD

S

Plan employment slots for Nigerian on project Full time equivalent of Nigeria employed

4 NCDMB Objectives for Fabrication

Maximize Nigerian content scope on fabrication packages

Develop skills of fabrication workers

Retain industry Spend association with fabrication value chain

Maximize use of skilled Nigerian fabrication workers


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1

2

3

4

Prescriptive Analytics


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SN POLICY ACTION RESPONSIBILIT

Y

DATE

1 Baseline survey

A key component of the NCDMB R&S framework is the need to

establish comprehensive baseline data of project promoters, service

companies and operating companies from which data will be sourced

on an ongoing basis. The baseline data is also to serve as source of

information for periodic gap analysis and gap closure (capacity building)

interventions. NCDMB and National Bureau of statistics are about to

start the baseline survey of companies offering critical services in the

industry including fabrication yards. This survey will help improve

quality of data going forward

R&S Q3,

2019

2 Categorization of fabrication yards

A key action that will follow the baseline survey is to categorize the

fabrication yards according to tonnage capacity:

1. Tier 1: > 10,000 Tons steel structure

2. Tier 2: 5,000 to 9,999 Tons

3. Tier 3:< 5,000 tons

R&S, CB, PCAD Q1,

2020



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3 Materials demand

The data presented indicated that there is high demand for steel

derivatives which are currently import dependent.

NCDMB should continue to work with Mines and steel sector on various

programmes to develop local steel industry as a panacea to increase

Nigerian content level in fabrication of oil and gas structures and platforms

CB Continu

ous

4 Data transmission:

The 36% response to the questionnaire is an indication of apathy of

fabrication yards to respond to data request. We propose that upon

completion of base line survey update of capacities on NOGICJQS not

later than every 6 months should be made a mandatory requirement for

fabrication yards. It should be stated that capacities published in the

NOGICJQS shall be the basis for bid evaluation by the Board

R&S, JQS Q4,

2019



www.ncdmb.gov.ng17

5 NCDMB Human capital development framework

The abysmal training exposure given to fabrication workers will lead

to continuous skill gaps in the industry if not addressed through

policy action. We propose that the NCDMB HCD framework should

provide for submission of training investment by companies to the

Board . This data should be considered as part of Nigerian content

requirement during bid evaluation

The framework should also include occupational standards for

fabrication workers to standardise employment and training &

certification in the sector

CB, PCAD Q3,

2019

6 Monitoring and Evaluation oversight

After every EPC project close out, NCDMB may commission a study

to determine Plan vs Actual impact assessment . This study will help

to uncover why targets have not been met on projects to serve as

lessons for future projects and where targets are met how to sustain

and surpass such targets on future projects (threshold management)

MED Conti

nuous

Limitation• Out of 25 fabrication yards only nine (9) companies responded to the survey

• Not all the nine companies submitted relevant data such as:

1. employment and training

2. Spend on materials

3.Material consumption

4. Scope of fabrication

5. fabrication tonnage

• Survey conclusion is that while there are competent fabrication yards of varying capacities and capabilities within Nigeria, the exact capacity and capability of the active companies not been established due to the fact that majority of the companies did not submit their completed survey.

• The baseline survey project scheduled for 2019 would address this gap


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18


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The analysis was carried out by:

Patrick Obah

Abdulmalik Halilu

Ajimijaye Silas

Adeola Omole

Lilly Warri

Arikewuyo Umar Kayode

Research Team

analysis of fabrication yards in nigeria -fabrication... · 2020. 5. 7. · 1. the total...

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